WhyBike Motorcycle Blog

Ralph was recently in a motorcycle accident and had a question about what happens when you need to use your underinsured motorist coverage.

I was in an accident and Blue Cross settled with the other guy’s insurance company but didn’t give a full and final release. Now, they want to recoup more from my UIM coverage. Can they do that? They collected $15,000 (policy limit) from the driver of the truck that hit me. Blue Cross paid the hospital a total of $33,000. I have $30,000 in uninsured and underinsured motorist coverage. My agent told me how to file the claim but now Blue Cross has filed a lien with my motorcycle insurance company for $18,000. I thought they could only go after the third party.

This is quite common. Your health insurance wants to be paid back and assuming that the driver has nothing to sue for, they will get it from your underinsured insurance coverage. That is what it is for. In some policies, they would be going after you if you did not have UIM coverage. Had you gone after the guy in civil court your heath insurance would want part of that. Remember to file a claim for lost wages as well. That is a commonly overlooked source of relief for accident victims.

I suggest you talk to your insurance agent and ask if your premium will increase; it should not. They will inform you on the next steps and let you know your options. But as with every insurance company interaction you will want to be informed so check the internet for more resources. Keep all your receipts and make sure to document every doctor visit and expense.